Fiscal deficit data hits markets, Sensex sheds

Stocks went into a tailspin on Thursday, with the benchmark Sensex suffering its biggest single-day fall in one year, after growing fiscal deficit concerns triggered a flight to safety among investors. The Bombay Stock Exchange (BSE) Sensex plummeted over 453 points to close at 33,149.35, while the broader Nifty finished below the key 10,300-mark. Investors' wealth as measured by market capitalisation of the BSE listed companies declined by over Rs 1.06 lakh crore. India's fiscal deficit at the end of October hit 96.1 per cent of the budget estimate for 2017-18, mainly due to lower revenue realisation and a rise in expenditure, official data showed. Participants also kept their portfolios at a low ebb ahead of the release of second-quarter GDP numbers, reports PTI. Squaring-up of positions following end of November series contracts in the derivatives segment and a weak trend at other Asian markets also weighed on sentiment, brokers said. The Sensex, after a gap down opening at 33,542.50, continued its slide to touch a low of 33,108.72. It finally settled 453.41 points or 1.35 per cent lower at 33,149.35. This was its biggest single session fall since November 15 l2016 when it had lost 514.19 points. The broader NSE Nifty, after cracking below the key 10,300-mark, touched a low of 10,211.25, before finally ending 134.75 points, or 1.30 per cent, down at 10,226.55. This was its biggest single day fall since September 27 this year, when it had declined by 135.75 points. "Markets slid and the rupee depreciated as widened fiscal deficit concerns and expectation of extension in oil production cut from OPEC influenced investors to offload funds.

“Thursday’s F&O expiry led volatility and selling in other Asian market hurt the sentiment, banks underperformed and metals lost their sheen," said Vinod Nair, Head of Research, Geojit Financial Services. The rupee slipped 31 paise to 64.62 (intra-day) against the US dollar on the forex market.